Govt probing significant rise in imports of single-mode optical fibre, may impose safeguard duty

The government may impose safeguard duty on imports of single-mode optical fibre, as it has initiated a probe into sudden and significant surge in the inbound shipments of the product following a complaint from the domestic industry.

According to a notification of the Directorate General of Trade Remedies (DGTR), an application has been filed by Sterlite Technologies and Birla Furukawa Fibre Optics for imposition of safeguard duty on the fibre as the increase in imports is impacting them.

"After determining that there is a sufficient evidence to justify initiation of safeguard investigation, the directorate general initiates an investigation," the DGTR has said in a notification.

In the probe, it would determine whether as a result of unforeseen developments, the increased imports of the product have impacted the domestic industry.

The single-mode optical fibre is used for signal transmission with certain bands. It is used for manufacture of optical fibre cable.

The period of investigation is from April 2016 to June this year.

The applicants have claimed that their profitability has considerably declined during this period and they are running in losses. They have also claimed that because the imports are coming at low prices, their companies were forced by their customers to reduce their prices, which has resulted in significant price depression.

Safeguard duty is a trade remedy available for a WTO (World Trade Organization) member countries. It is imposed to provide a level-playing field to domestic players in the case of sudden and significant increase in imports of a product.